New Delhi: Life Corporation of India (LIC) will lend as much as ₹25,000 crore to National Highways Authority of India (NHAI) in the ongoing financial year to fund highway projects, chairman of the highway authority N N Sinha said.
“We are in talks with LIC to raise around ₹25,000 crore," Sinha told reporters here. NHAI will raise funds from the insurer by issuing bonds.
The highways authority plans to raise ₹75,000 crore from the markets in the 2019-20 financial year to fund key infrastructure projects such as Bharatmala. Besides, raising funds from the market, the government has allocated ₹36,691 crore to NHAI as budgetary allocation this year.
Without divulging further details, Sinha also said that NHAI is working with National Infrastructure Investment Fund (NIIF) to fund large greenfield projects. Along with this, Sinha said that an infrastructure investment fund (InvIT)-- mutual fund like instruments that enable investment in infrastructure sector by pooling small sums of money from several individual investors-- will also be floated by December, which will soon get approval from the Cabinet.